What is a Per Occurrence or Each Occurrence Limit – Video

A General Liability policy will include a Per Occurrence (or Each Occurrence) Limit and a General Aggregate Limit.

Per Occurrence Limit: Is the most the company will pay for Bodily Injury and Property Damage arising out of any one occurrence.

General Aggregate: Is the most the company will pay for Bodily Injury and Property Damage durring the policy term.

Here is a quick video that explains The Each Occurrence vs. General Aggregate Limit of a General Liability Policy:

Sample General Liability Policy Limits:

Let’s say a Business has the following limits:

•  Per Occurrence Limit of: $1,000,000 

•  General Aggregate Limit of: $2,000,000

Extreme Claim Examples for One Business (during the same policy term):

•  Claim #1: The Business is determined to be Liable and required to pay a settlement of $1,100,000

•  The Insurance Company will pay $1,000,000 (the each occurrence limit) leaving the Insured to pay the remaining $100,000

• Claim #2: The Business  is determined to be Liable and required to pay a settlement of $1,000,000  

•  The Insurance Company will pay the full claim

• Claim #3: The Company is determined to be Liable and required to pay a settlement of: $50,000

•  The Insurance Company will pay $0 because the General Aggregate limit of $2,000,000 has been completely exhausted by the 2 prior claims.

Policy Limits: 

If you are a Business that is involved in Business to Business Sales, the Per Occurrence Limits you have will likely be determined by the partnerships you have – example:  

• A Manufacturer that will sell their products at a major retailer, will be required to comply with the Liability Limit Requirements of the Retailer.  

• A Missouri Contractor will have to comply with the  Each Occurrence Limit requirements of Building Owners or if they are a subcontractor, they will have to meet the requirements of the General Contractor. 

• A Restaurant, that does not own their building will have to comply with the Liability requirements of the Landlord

Call (636-519-0059)  or email today and we will work with you to design the Best General Liability Coverage for your Business

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